Outlined below is market data information, similar to what was presented in the Beta Project lecture and spreadsheet.

Period Market Stock X Stock Y Stock Z T-Bills

1 .1146 .087 .112 .053 .0091

59 .028 .034 -.004 .0411 .0116

60 .099 -.012 .033 .103 .0120

Avg. .082 .114 .046 .121 .0140

Beta 1.00 0.77 1.16 1.43 0.00

P₀ X Y Z $990.88

Stock X is expected to pay a dividend of $1.24 per share one year from today. Dividends are projected to increase at an annual rate of 2.3% indefinitely. What is the estimate of the companys current stock price?

Multiple Choice

• $23.31

• None of the above

• $22.14

• $32.12

• $29.95